1895 Bancorp of Wisconsin (1895 Bancorp of Wisconsin) Beneish M-Score : -2.10 (As of Apr. 27, 2024)

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What is 1895 Bancorp of Wisconsin Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.1 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for 1895 Bancorp of Wisconsin's Beneish M-Score or its related term are showing as below:

BCOW' s Beneish M-Score Range Over the Past 10 Years
Min: -3.2 Med: -2.44 Max: -2.1
Current: -2.1

During the past 8 years, the highest Beneish M-Score of 1895 Bancorp of Wisconsin was -2.10. The lowest was -3.20. And the median was -2.44.

1895 Bancorp of Wisconsin Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of 1895 Bancorp of Wisconsin for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.8638

0.528 * 1

0.404 * 1.0582

0.892 * 0.6633

0.115 * 1.1435

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.6452

4.679 * -0.010909

0.327 * 0.9787

-2.10

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $1.55 Mil.
Revenue was 1.005 + 1.727 + 3.986 + 4.005 = $10.72 Mil.
Gross Profit was 1.005 + 1.727 + 3.986 + 4.005 = $10.72 Mil.
Total Current Assets was $122.33 Mil.
Total Assets was $557.61 Mil.
Property, Plant and Equipment(Net PPE) was $5.18 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.49 Mil.
Selling, General, & Admin. Expense(SGA) was $11.00 Mil.
Total Current Liabilities was $1.11 Mil.
Long-Term Debt & Capital Lease Obligation was $71.01 Mil.
Net Income was -2.282 + -3.641 + -0.508 + -0.361 = $-6.79 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -0.385 + 0.512 + 0.251 + -1.087 = $-0.71 Mil.

Total Receivables was $1.26 Mil.
Revenue was 4.26 + 4.555 + 3.415 + 3.936 = $16.17 Mil.
Gross Profit was 4.26 + 4.555 + 3.415 + 3.936 = $16.17 Mil.
Total Current Assets was $141.78 Mil.
Total Assets was $543.02 Mil.
Property, Plant and Equipment(Net PPE) was $5.45 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.60 Mil.
Selling, General, & Admin. Expense(SGA) was $10.08 Mil.
Total Current Liabilities was $0.29 Mil.
Long-Term Debt & Capital Lease Obligation was $71.46 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(1.554 / 10.723)	/	(1.257 / 16.166)
	=	0.144922	/	0.077756
	=	1.8638

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(16.166 / 16.166)	/	(10.723 / 10.723)
	=	1	/	1
	=	1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (122.333 + 5.182) / 557.607)	/	(1 - (141.778 + 5.451) / 543.016)
	=	0.771317	/	0.728868
	=	1.0582

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	10.723	/	16.166
	=	0.6633

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(0.6 / (0.6 + 5.451))	/	(0.492 / (0.492 + 5.182))
	=	0.099157	/	0.086711
	=	1.1435

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(10.999 / 10.723)	/	(10.079 / 16.166)
	=	1.025739	/	0.623469
	=	1.6452

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((71.007 + 1.106) / 557.607)	/	((71.464 + 0.291) / 543.016)
	=	0.129326	/	0.132142
	=	0.9787

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-6.792 - 0	-	-0.709)	/	557.607
	=	-0.010909

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

1895 Bancorp of Wisconsin has a M-score of -2.10 suggests that the company is unlikely to be a manipulator.

1895 Bancorp of Wisconsin Beneish M-Score Related Terms

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1895 Bancorp of Wisconsin (1895 Bancorp of Wisconsin) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » 1895 Bancorp of Wisconsin Inc (NAS:BCOW) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

7001 West Edgerton Avenue, Greenfield, WI, USA, 53220

Website

https://www.pyramaxbank.com

1895 Bancorp of Wisconsin Inc acts as the mutual holding company reorganization of PyraMax Bank, FSB, to become the savings and loan holding company of PyraMax Bank, FSB. Its business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations, in one-to-four family residential real estate loans, commercial real estate loans, commercial loans, and consumer loans.

Executives

Steven T. Klitzing	officer: SVP and CFO	7001 WEST EDGERTON AVENUE, GREENFIELD WI 53220
Gary Zenobi	director	7001 WEST EDGERTON AVENUE, GREENFIELD WI 53220
David R Ball	director, officer: President and CEO	7001 WEST EDGERTON AVENUE, GREENFIELD WI 53220
Kristina Hill	director	C/O 1895 BANCORP OF WISCONSIN, INC., 7001 WEST EDGERTON AVENUE, GREENFIELD WI 53220
Thomas K. Peterson	officer: SVP and Comm Lending Officer	7001 WEST EDGERTON AVENUE, GREENFIELD WI 53220
Monica Baker	officer: EVP and COO	7001 WEST EDGERTON AVENUE, GREENFIELD WI 53220
Daniel Kempel	officer: SVP and CCO	7001 WEST EDGERTON AVENUE, GREENFIELD WI 53220
Richard B Hurd	director, officer: EVP - Strategic Planning Ofcr	7001 WEST EDGERTON AVENUE, GREENFIELD WI 53220
Eric T. Hurd	officer: SVP and CLO	7001 WEST EDGERTON AVENUE, GREENFIELD WI 53220
Joseph G. Murphy	director	7001 WEST EDGERTON AVENUE, GREENFIELD WI 53220
James Spiegelberg	director	7001 WEST EDGERTON AVENUE, GREENFIELD WI 53220
John Talsky	director	7001 WEST EDGERTON AVENUE, GREENFIELD WI 53220
Richard J Krier	officer: Chief Financial Officer	7001 WEST EDGERTON AVENUE, GREENFIELD WI 53220
Darrell A. Francis	director	7001 WEST EDGERTON AVENUE, GREENFIELD WI 53220
Charles Mauer	officer: SVP and Chief Credit Officer	7001 WEST EDGERTON AVENUE, GREENFIELD WI 53220